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Bellevue WA Rent or Sell Home: Making the Right Choice in a Dynamic Market

When life calls for a move or a home purchase, homeowners in Bellevue, WA, face a crucial decision: Should you rent out your existing property or sell it? Each option presents its benefits and challenges, influenced by Bellevue’s unique economic and real estate conditions. Bellevue WA Rent or Sell Home; This article aims to guide you through these options, using local economic data and insights into the benefits of professional property management.

Understanding the Bellevue Real Estate Market

Current Market Conditions

Bellevue’s real estate market has been notably robust and dynamic. As of early 2024, Bellevue home prices have continued to appreciate, although the rate of appreciation has slowed compared to previous years. In March 2024, Bellevue homes were selling for a median price of $1.5 million, up 8.7% compared to the previous year, reflecting a strong seller’s market where homes often sell quickly, averaging around 13 days on the market​ (Redfin)​.

Despite a slight overall depreciation rate over the last year of -0.38%, Bellevue real estate has appreciated 116.90% over the last ten years, averaging an annual appreciation rate of 8.05%. This places Bellevue among the top communities nationally for long-term real estate investment. The latest quarterly data, however, shows a decrease of 1.24% in home values, suggesting a cooling period​ (NeighborhoodScout)​.

Given this context, Bellevue remains a competitive seller’s market, making it attractive for homeowners considering selling their property. However, the consistent demand for housing and the city’s economic growth—driven by strong sectors like tech and healthcare—also make it a viable option to rent out property, especially with professional property management to navigate the complexities of the rental market.

These insights should help inform your decision on whether to rent out or sell your property in Bellevue, taking into account both the current market conditions and the long-term economic trends.

Rental Market Overview

​The rental market in Bellevue, WA, remains strong and vibrant, driven by the area’s economic growth and the influx of professionals in the tech and healthcare sectors. The average rent for apartments in Bellevue as of April 2024 is approximately $2,875 per month, with houses renting for an average of $4,063 per month. This indicates a substantial demand for rental properties, particularly given the higher rental prices compared to other nearby cities (rent)​​ (Redfin)​.

Furthermore, Bellevue’s rental market has shown resilience with a stable trend in rental prices. Despite slight fluctuations, the demand for rental properties remains high due to the ongoing influx of skilled workers and the city’s robust economic environment. Bellevue’s vacancy rates are also notably lower than the national average, underscoring a healthy rental market. This combination of high demand and steady rental prices makes property leasing in Bellevue a potentially lucrative option for homeowners​ (Zumper – Apartments for Rent & Houses)​.

Given these factors, if you’re considering whether to rent out your Bellevue property or sell it, the strong rental market provides a compelling case for renting. This is especially true if you factor in the benefits of using professional property management services to handle the logistics and day-to-day operations of renting out your property, making it a hassle-free income source.

Bellevue WA Rent or Sell Home: Economic Factors Influencing Your Decision

Job Market Trends

Bellevue’s economy is significantly bolstered by its tech and healthcare sectors, which are major contributors to the region’s employment and economic stability. The tech sector alone accounts for about 22% of Washington State’s economy, with Bellevue emerging as a vital hub for these industries. This has led to high employment levels and an affluent population that supports both the real estate and rental markets in the area​ (WTIA)​.

Furthermore, Bellevue’s job market has been growing steadily, with projections indicating that it will continue to do so. The city has over 150,000 jobs, and this number is expected to rise to nearly 193,000 by 2035. This growth is supported by a high percentage of Bellevue’s employed residents working within the city, further emphasizing the local economic strength and the demand for housing in close proximity to workplaces​ (bellevuewa)​.

The city’s resilience is also evident in its ability to maintain a lower vacancy rate compared to other regional markets, despite broader economic challenges. This robust job market and economic environment make Bellevue a desirable location for living and working, thereby enhancing the demand for both residential and rental properties​ (Downtown Bellevue Network)​.

These factors collectively create a favorable environment for homeowners considering renting out their properties, as there is a consistent demand for housing near employment hubs, driven by the city’s thriving economic sectors.

Population and Demographics

Bellevue’s population is growing steadily, reflecting its appeal to a dynamic mix of young professionals and families. This demographic shift is significantly influenced by the city’s strong job market and high-quality educational resources. As of 2023, Bellevue’s population continues to rise, albeit at a modest rate of about 0.33% annually since the last census in 2020​ (World Population Review)​.

The city’s appeal is further bolstered by its economic landscape, dominated by thriving tech and healthcare sectors, which attract a workforce that values proximity to both employment and good schools. Bellevue’s population characteristics show a significant portion being highly educated, which aligns well with the needs of these sectors. Notably, a substantial number of residents are families and young professionals, who often look for rental housing that balances accessibility to work and educational opportunities​ (bellevuewa)​​ (Neilsberg)​.

This trend underlines a growing demand for rental properties in Bellevue, making it an advantageous market for homeowners considering renting out their properties. Given the city’s strategic positioning near major employment hubs and its reputation for excellent schools, properties in Bellevue are likely to remain in high demand among renters. This scenario presents a compelling case for property owners to consider the rental market as a viable option for their investment strategy.

Infrastructure and Development Projects

Bellevue’s recent infrastructure upgrades significantly boost its appeal as a residential area, particularly for property investors. Key developments include improvements to public transit, the creation of new parks, and enhanced community services. These initiatives not only make Bellevue a more attractive place to live but also contribute to the potential increase in property values over time.

The city’s comprehensive infrastructure plan (Capital Investment Program Plan 2023-2029) outlines several major public facility improvements scheduled over a seven-year period, emphasizing transportation, parks, and general government projects. For instance, the Growth Corridor High Comfort Bicycle Network Implementation aims to enhance non-auto travel options, making Bellevue more accessible and environmentally friendly​ (bellevuewa)​.

Additionally, Bellevue is investing in its parks system, expanding over 2,700 acres of parks and open spaces that include basketball courts, trails, and non-motorized watercraft launch sites. These amenities not only serve the community’s recreational needs but also increase the desirability of nearby residential areas​ (bellevuewa)​.

These infrastructure projects, particularly those improving transportation and recreational facilities, are likely to positively impact property values. Homeowners considering renting their properties could see higher returns on their investment as these improvements continue to attract residents and enhance the quality of life in Bellevue.

Pros and Cons of Renting vs. Selling

Renting Out

Pros:

  • Steady passive income from rental payments.
  • Potential property value appreciation due to ongoing local developments.
  • Flexibility to decide on selling later as the market evolves.

Cons:

  • Responsibilities and hassles of landlord duties.
  • Potential for tenant-related issues and property maintenance.
  • Involvement in ongoing property management tasks unless delegated to professionals.

Selling

Pros:

  • Immediate return on investment and liquidity.
  • Elimination of landlord responsibilities.
  • Opportunity to capitalize on a strong seller’s market.

Cons:

  • Potential loss from future appreciation of property value.
  • Tax implications, including capital gains tax.
  • Costs associated with the selling process, such as realtor commissions and closing fees.

The Case for Professional Property Management

If you’re leaning towards renting out your property, consider the advantages of engaging a professional property management firm. A good property manager can handle all aspects of managing your rental, from marketing your property and screening tenants to handling maintenance issues and ensuring compliance with local laws. This support can not only maximize your rental income but also minimize the hassles and time commitment typically associated with being a landlord.

Conclusion

Renting out your property in Bellevue can offer significant financial benefits, especially with the support of professional property management. However, selling might be the better option if immediate cash is a priority or if you prefer not to deal with the complexities of property management. Consider your long-term financial goals, current lifestyle needs, and the local real estate market trends before making a decision.

So, homeowners in Bellevue WA Rent or Sell Home? Are you learning toward renting out your Bellevue property? Contact VerraTerra, your local property management experts, to discuss how we can help maximize your rental income and manage your property efficiently. Let us take the hassle out of being a landlord for you.